The London Stock Exchange is taking a major step into blockchain-based markets, planning to offer tokenized versions of U.K. shares as it prepares to launch a new 24-hour trading venue in 2027.
London Stock Exchange Group will partner with Payward, the parent company of cryptocurrency exchange Kraken to introduce blockchain-based representations of listed equities, known as xStocks. The tokens will be backed one-for-one by the underlying shares, according to The Wall Street Journal.
The initiative is designed to bring some of the features of crypto markets — including round-the-clock access and faster settlement — into regulated equity trading. LSEG plans to begin testing its new LSE 24 platform by the end of 2026, with a full launch targeted for 2027, subject to regulatory approval, according to Reuters.
For investors, tokenization could make shares available for trading beyond traditional market hours while allowing transactions to settle more quickly. The exchange is also betting the technology can broaden access to London-listed companies and attract investors already accustomed to digital-asset markets.
The move comes as exchanges and financial firms experiment with putting traditional assets on blockchains. LSEG has been developing blockchain-based market infrastructure, while the partnership with Payward brings a major cryptocurrency-market operator directly into its expansion into tokenized securities.
LSEG Chief Executive Julia Hoggett said tokenization could transform financial markets, while emphasizing the importance of maintaining trust and regulatory standards as the technology develops.
The partnership marks a notable convergence between traditional finance and crypto infrastructure: one of the world’s major stock exchanges is preparing to use blockchain technology not simply to create a new asset class, but to reshape how conventional equities are traded and settled.